A $1.3 billion loan will assist in constructing a data center for Anthropic in Texas.

      An investment firm is providing approximately $1.3 billion to support the construction of a massive AI data center in Texas, which will be home to Anthropic. This transaction is part of a series of significant deals fueling the AI industry. Bloomberg reported that Eagle Point Credit Management is behind the loan.

      This loan is a component of a much larger agreement. A source familiar with the project informed Bloomberg that it is part of an approximately $16 billion project-financing package for the developer, Nexus Data Centers. The funds will be utilized to complete a 2,900-acre campus in Hubbard, a city located about 70 miles south of Dallas.

      Anthropic is set to be the primary tenant, according to the same source. The AI lab is eager to secure computing power, and arrangements like this one offer access to a substantial new location without the need for building it themselves. The campus will include its own gas-powered energy facility. Eagle Point characterized the site as both a data center and a “behind-the-meter” power project, signifying that it generates its own electricity instead of relying on the grid.

      Regarding the loan structure, Eagle Point is the largest single investor in the roughly $1.3 billion loan, as reported by Bloomberg. The debt is structured as mezzanine financing, which means it is subordinate to the safest portions of the overall financing package, carrying more risk than senior debt and typically offering a higher return to compensate for that risk.

      In a statement, Eagle Point referred to its portion as a “HoldCo” loan, stating that the financing completed the capital structure for the first phase of the multi-phase campus and enabled Nexus to make a final investment decision. According to a statement seen by Bloomberg, the mezzanine portion recently closed. Eagle Point indicated that its financing assisted Nexus in finalizing the capital structure for the campus's first phase.

      Banks such as Morgan Stanley are leading the larger financing package, as reported by Bloomberg. The senior portion led by banks amounts to about $15 billion of the approximately $16 billion total, with Eagle Point's $1.3 billion serving as a riskier layer on top. Nexus declined to comment, and Anthropic did not respond to Bloomberg's inquiries outside of business hours.

      Eagle Point’s prominence in this role is highlighted by its size. Based in Greenwich, Connecticut, the firm manages around $14 billion, as noted by Bloomberg. Thomas Majewski founded the firm in 2012 with Stone Point Capital, and it currently employs over 120 individuals, according to its own statement. The majority of the jumbo private-financing market is dominated by Wall Street’s largest asset managers, making a mid-sized firm leading a part of this deal noteworthy.

      Eagle Point developed its involvement over several months, having started work on a loan for Nexus around September of the previous year, as reported by Bloomberg. Initially, the plan was for about $150 million of senior debt secured by the Hubbard property. Eagle Point and Nexus later increased the amount and restructured the deal multiple times to arrive at the current agreement.

      Eagle Point emphasized the quick progress. Nexus reached its final investment decision in under a year, which Jennifer Powers, Eagle Point’s head of infrastructure credit, described as “a truly remarkable achievement.” Nexus CEO Ivan Van der Walt acknowledged that Eagle Point had supported the project through four financing rounds, noting that their team played a crucial role in completing the capital structure "at a critical moment." Eagle Point regarded this deal as a significant milestone for its infrastructure-credit division.

      Two main factors facilitated the financing arrangement, as reported by Bloomberg. First, Anthropic successfully won a competitive bid to become the primary tenant of the campus. Second, Google agreed to back the senior debt within the deal.

      Google's involvement is consistent with its previous actions, as Alphabet’s Google has supported debt payments at various data centers across the nation, according to Bloomberg. Such assurances can make investors more confident about lending substantial amounts while concentrating financial risk. If a tenant or sponsor encounters difficulties, the risk is shared among fewer parties.

      This structure is common within the industry. Anthropic has utilized external funding to expand its computing capabilities, entering into financing agreements like a partnership with Macquarie and others. This approach enables the AI lab to secure capacity without upfront ownership or payment for the facilities.

      The Hubbard campus represents Nexus's inaugural project and is expected to be one of the largest among numerous data center developments that are currently being rushed to completion, as reported by Bloomberg. Demand for these projects is being driven by companies that are training and deploying AI models. Over the past year, Anthropic, OpenAI, Google, and others have engaged in a series of multibillion-dollar agreements to secure computing resources.

      These projects are being financed through borrowed funds. Developers typically repay construction loans by issuing new debt upon project completion. This model relies on the willingness of lenders and bond purchasers to finance the subsequent rounds. Nexus may issue high-yield bonds later this year to refinance the $15 billion